Get Your Rebates
Get them while they are hot. Read on for more information about the tax rebates.
To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.
Adjusted gross income is not your annual salary. It's equal to gross income minus above the line deductions, which are reported on page 1 of the 1040 tax form. Above-the-line deductions include deductible IRA contributions, alimony paid and, for the self-employed, some portion of money spent on health insurance or Social Security.
Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200.
In addition, parents will also receive $300 rebates per dependent child; there is no cap on the number of children eligible.
Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income, which can include Social Security and disability payments, will get $300 rebates per person or $600 per couple.
Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.
It is based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.
The IRS will start sending out checks in early May. It should take about about 10 weeks to process out all the checks. In all likelihood then, you will see the money sometime between May and early July.
Labels: Income Tax, tax rebate
Posted By: Joe on Friday, February 15, 2008
PermaLink | 3 comments | Click to Comment
Share this
3 Comments:
Do these automatically show up when you do your taxes, with something like turbo tax online? or do you specific have to file for the rebate? in other words, how do you go about getting it?
You will not have to do anything. One day you will check the mail be surprised. Filing your 2007 tax return is a prerequisite to getting your stimulus rebate check.
The IRS on Wednesday said it will begin mailing out rebates in May.
People who have already filed their 2007 tax returns and reported at least $3,000 in qualifying income don't need to do anything else. The IRS will assess their rebate eligibility and send a check to those who qualify.
Taxpayers who file their 2007 tax returns on time will get their rebates sooner than those who seek extensions. And those who have direct deposit will speed things along.
Thanks, Joe - I'm so glad you replied because I'm in the middle of doing my federal taxes right now....
Your dear darling sister in law.
Post a Comment
<< Home